COUNTRY REPORT TAIWANUBS to lead a Swiss roadshow on Monday in
Zurich.
Harvest Operations, a Calgary-based oil
exploration and production company and
a wholly owned subsidiary of state-owned
KNOC, priced a US$397.5m five-year bond
at Treasuries plus 140bp last month.
EQUITY CAPITAL MARKETS
› HYUNDAI ROTEM BLOCK UPSIZED
Morgan Stanley unit MSPE Metro-
Investment has raised W230bn (US$214m)
from the sale of part of its stake in Korean
rolling stock manufacturer HYUNDAI ROTEM.
The deal was launched at a base size of
7.33m shares with an indicative price range
of W27,873–W29,177 each, or a discount of
10.5%–14.5% to the pre-deal spot. There was
an upsize option of 1.8m shares.
The vendor eventually sold 8.23m shares
at W28,000, representing a discount of
14.1% to the pre-deal spot.
The books were multiple times covered
on the full deal size. The vendor could have
used the upsize option in full but decided
not to. About 30 investors, mainly hedge
funds, participated in the transaction with
the top five taking more than 70% of the
deal. About a quarter of demand came
from domestic investors and the rest from
international investors.
There is a 60-day lock-up on the seller.
Citigroup was the sole bookrunner.TAIWAN
SYNDICATED LOANS
› AU OPTRONICS LAUNCHES NT$35BN LOANTaiwanese LCD maker AU OPTRONICS has
launched a NT$35bn (US$1.2bn) five-year
loan, 10 months after it closed a NT$23bn
loan.
Bank of Taiwan is the mandated lead
arranger, bookrunner and facility agent.
The interest margin is tied to the
borrower’s after-tax net profit margin:
105bp over Taibor for an after-tax net profit
margin below 0%, 100bp for 0–2.9%, 89bp
for 3–5.9% and 84bp for 6% or more. Thepre-tax interest rate floor is set at 1.7%.
Banks are being invited to join at
five ticket levels. MLAs committing
NT$6.5bn or more, NT$5bn–$6.4bn or
NT$3.5bn–$4.9bn will earn upfront fees
of 36bp, 30bp or 22bp, respectively;
while co-arrangers that commit NT$2bn–
$3.4bn will get an upfront fee of 13bp.
Participants that commit NT$1bn–$1.9bn
will get a 6bp fee. The deadline for
responses is June 8.
Funds are for refinancing purposes.
The borrower signed the NT$23bn
five-year loan last July. BoT also led that
deal, which pays a margin ranging from
85bp to 110bp over Taibor based on the
borrower’s after-tax net profit margin.
The deal also has a pre-tax interest rate
floor set at 1.7%.› CHENG LOONG INCREASES LOANCHENG LOONG has increased a five-year
financing to NT$7.2bn from a NT$6bn
target.
Hua Nan Commercial Bank was the
original mandated lead arranger and
bookrunner, while First Commercial Bank
and Taipei Fubon Commercial Bank came in
with the same title.
The deal comprises a NT$7.2bn term loan
tranche A, a NT$2.16bn term loan tranche
B and a NT$4.32bn guarantee tranche C.
The borrower can only draw a maximum
amount of NT$7.2bn.
The interest margin is 60bp over Taibor,
with a pre-tax interest rate floor set at 1.7%.
Banks were offered a top-level upfront fee
of 10bp.
Funds were for working capital purposes
and to refinance a NT$6bn five-year facility
signed in September 2014. Signing was on
April 26.
The borrower makes industrial paper and
corrugated containers.
For full allocations, see http://www.ifrasia.com.Top bookrunners of all South Korea Won bonds
1/1/18 – 30/4/18
Amount
Name Issues Won(m) %
1 KB Financial 187 10,560,558.0 18.3
2 Mirae Asset Daewoo 132 7,164,280.0 12.4
3 Korea Investment 155 6,772,050.0 11.7
4 NH Inv & Sec 93 6,400,130.0 11.1
5 Kyobo Life 70 3,598,302.0 6.2
6 SK Sec 52 3,208,000.0 5.6
7 DB Financial Investment 39 2,225,400.0 3.9
8 Shinhan Financial 27 2,005,000.0 3.5
9 Samsung Sec 21 1,721,017.0 3.0
10 Hana Financial 23 1,711,000.0 3.0
Total 1,230 57,692,370.1
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS22
South Korea global equity and equity-related
1/1/18 – 30/4/18
Amount
Name Issues US$(m) %
1 Citigroup 4 1,291.8 17.6
2 Goldman Sachs 3 1,029.2 14.0
3 Credit Suisse 3 998.8 13.6
4 Daishin Sec 7 953.6 13.0
5 NH Inv & Sec 6 699.2 9.5
6 Korea Investment 6 555.4 7.6
7 Shinhan Financial 11 465.7 6.3
8 Mirae Asset Daewoo 4 278.6 3.8
9 Hana Financial 4 261.3 3.6
10 KB Financial 1 191.2 2.6
Total 44 7,348.1
Source: Thomson Reuters SDC Code: C1Q
Top bookrunners of all Taiwan dollar bonds
1/1/18 – 30/4/18
Amount
Name Issues NT$(m) %
1 HSBC 1 22,000.0 51.2
2 Yuanta Financial 3 11,000.0 25.6
3 KGI Financial 1 3,000.0 7.0
4 Capital Sec 1 1,000.0 2.3
Total 7 43,000.0
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS11Top bookrunners of Taiwan syndicated loans
1/1/18 – 30/4/18
Amount
Name Deals US$(m) %
1 Mega Financial 10 1,232.4 17.0
2 Taiwan Financial 12 1,105.2 15.3
3 Taiwan Cooperative 8 866.9 12.0
4 Taishin International 5 739.8 10.2
5 Fubon Financial 7 661.2 9.1
6 DBS 3 394.7 5.5
7 Land Bank of Taiwan 3 335.6 4.6
8* Chang Hwa Commercial 4 284.9 3.9
8* Cathay Financial 3 284.9 3.9
10 Hua Nan Financial 3 268.2 3.7
Total 38 7,242.3
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S19bTaiwan global equity and equity-related
1/1/18 – 30/4/18
Amount
Name Issues US$(m) %
1 Morgan Stanley 2 261.5 25.8
2 Taishin Financial 7 239.5 23.6
3 Yuanta Financial 2 167.7 16.5
4 Grand Fortune Sec 2 85.9 8.5
5 Mega Financial 4 59.2 5.8
6 Sinopac Holdings 5 46.3 4.6
7 Cathay Financial 3 33.6 3.3
8 Fubon Financial 6 30.3 3.0
9 Concord Sec 1 28.0 2.8
10 KGI Financial 3 19.3 1.9
Total 44 1,015.6Source: Thomson Reuters